Energy Transfer Will Convert an Eagle Ford Gas Pipeline to Liquids to Supply Trafigura Terminal in Corpus Christi

Trafigura Terminals Eagle Ford Port in Corpus Christi

Energy Transfer has reached an agreement with Trafigura for liquids capacity that supports the development of a pipeline supplying the Port of Corpus Christi.

Energy Transfer will utilize existing infrastructure to construct an 82-mile, 100,000 b/d pipeline system from McMullen County to the Port of Corpus Christi.

Leveraging underutilized natural gas pipelines allows Energy Transfer to have the pipeline running in 9-12 months.

“This pipeline combined with our deep-water terminal enables Trafigura to offer a complete solution to producers who seek to take Eagle Ford to the broader market.”

— Jeff Kopp, Trafigura's Director of Oil for North America.

Oil Tanker Leaving Port of Corpus Christi

The pipeline will deliver crude to Trafigura's Port of Corpus Christi Terminal, where a $500 million construction project is underway on a second deep-water dock that is 850 ft long and has a draft of 45 ft. Once complete, the terminal will be able to handle Aframax vessels (245 meters or ~800 ft long). Aframax ships are medium-sized oil tankers with capacity of approximately 750,000 barrels.

Trafigura states the facility will be able to handle three medium range tankers and two inland barges at one time.

Eagle Ford Helps Anadarko Achieve Record Onshore Production

Anadarko Southern and Appalachia Sales Volumes Q3 2013

Anadarko set a new record for onshore U.S. sales volumes with 590,000 boe/d of production in the third quarter. The record was achieved through growth in areas like the Eagle Ford.

Anadarko's Eagle Ford production grew 4% from the previous period to 50,000 boe/d in the third quarter. More impressively, the company has grown production from the play by 38% over this time in 2012.

Anadarko operated nine rigs in the quarter and spud 97 wells. With the average drilling time coming in at less than ten days, the company expects to drill ~325 wells in 2013.

“We continue to demonstrate our commitment to value acceleration and portfolio management.”

— Al Walker, CEO

During the second half of the year, Anadarko's midstream infrastructure has expanded significantly:

• Commissioned 3 oil stabilization trains with 75,000 b/d of capacity
• Reached start up on an expanded gas gathering facility (500 mmcfd)
• Added gas compression
• Expects to add more compression and another 25,000 b/d oil stabilization train in the fourth quarter

Additional midstream infrastructure will allow for more predictable growth and allows the company to maximize the value of the liquids it produces.

Anadarko will likely spend more in the Eagle Ford in 2014 than the company spent in 2013.

Anadarko reached record production in the Wattenberg field, the Eagle Ford, East Texas Haynesville, the Greater Natural Buttes area in Utah, and the Marcellus Shale. Read the full release at anadarko.com

Southcross Energy's Eagle Ford Project Is Nearing Completion

Southcross Energy's Eagle Ford Projects & Assets

Southcross Energy is expected to complete a natural gas pipeline lateral into McMullen County later in October. The pipeline is expected to add 15 mmcfd of rich natural gas supply to the company's South Texas processing and fractionation complex.

The company's South Texas Eagle Ford region experienced processing volume growth of 9% and NGL sales volume growth of 17% in the third quarter. Small expansions like the McMullen County pipeline lateral should continue to support growth in volumes for Southcross.

“We are expanding our pipeline network in the Eagle Ford to capture processing volumes and to meet growing demand for the integrated services that we offer.
”

— David Biegler, Chairman, CEO of Southcross’ general partner

Southcross has completed three expansions recently:

• 3.5 mile lateral in McMullen County
• 9.5 mile, 16-inch pipeline in Karnes County
• A new propane pipeline connected to the Bonnie View fractionator

Read the full McMullen County expansion press release at southcrossenergy.com

Kinder Morgan Crude & Condensate Pipeline Expanding Into Gonzales County - $74 Million

Kinder Morgan Crude & Condensate Expansion into Karnes County

Kinder Morgan announced another expansion in the Eagle Ford. The company will spend $74 million to expand the Kinder Morgan Crude & Condensate (KMCC) pipeline 18 miles from the DeWitt Station into Gonzales County.

The latest expansion isn't included on the map, but it will extend north from the point near Cuero, TX.

The 24-inch pipeline will have capacity of 300,000 b/d. The expansion will connect with a new facility in Gonzales County that will have 300,000 bbls of storage, a pump station, and truck offloading facilities.

Kinder Morgan Expanding Eagle Ford System Into Karnes County

The oil will move through the Kinder Morgan system to delivery points in the Houston Ship Channel or the Phillips 66 Sweeney Refinery in Brazoria County, TX.

“We are pleased to enter this long-term arrangement to move more Eagle Ford Shale product to the Houston Ship Channel and surrounding areas and once again provide much needed optionality to Eagle Ford producers and Houston market consumers.”

— Don Lindley, president, Natural Gas Liquids Business Development for KMP.

The expansion is supported by commitment from a major Eagle Ford operator. My first thought is it is probably EOG Resources (comment below if you agree or not). There are other operators in the area, but none come to mind that could make a commitment large enough to support development of a 300,000 b/d pipeline.

Not counting what has already been invested, Kinder Morgan has a total of $900 million in planned investments in the Eagle Ford.

Read the full press release at KinderMorgan.com

Port of Corpus Christi's Eagle Ford Oil Exports Exceed Oil Imports

The Port of Corpus Christi has reached a milestone that won't likely be reversed any time soon. Oil exports from the port are exceeding imports. During the month of August, the port saw oil exports rise to almost 3.9 million barrels (~124,000 b/d) compared to inbound cargo of just 2.8 million barrels (~90,000 b/d). One year prior in August of 2012, the port was exporting just 2.8 million barrels (~90,000 b/d) and importing over 3 million barrels (~100,000 b/d).

“There’s new wells being drilled everyday. Mainly, right now, they’re oil,” John LaRue, Port Director, said. “The gas part has not, it initially took off but because the price of natural gas is so low, they’re not drilling as many of those.”